Best Life Insurance in Texas of 2023

Amanda Hester

As you age, the premium rate for life insurance also increases. So if you’re considering enrolling yourself under a policy, there is no sooner time to begin than now. With life insurance, you can provide a monetary benefit for your loved ones when you pass away, and reduce any potential financial concerns after your demise.

To help you with the process of choosing a life insurance plan, we reviewed and compared the top life insurance companies based on policy pricing, available options, customer support, financial strength, and overall quality.

Affordable term life Insurance coverage


Coverage Up To

No (up to $3M)

Medical Exam


With Ladder, you can customize your insurance coverage depending on your unique needs throughout your term. You can remove coverage when necessary and apply to add more. Rates start from $4.95/month based on a 20-year-old female for a 10-year term, preferred plus health class.

What we like

  • Flexibility to adjust coverage throughout the term
  • Coverage you can manage online
  • No medical exam required for coverage up to $3M

What we don't

  • No riders are availabe
  • Coverage ends at 70 years of age

Complete your application online


Coverage Up To

May Need

Medical Exam


Haven Life simplifies the insurance application process to learn about your coverage options. There are two products: Haven Simple and Haven Term. Haven Simple requires no medical exam and has a lower coverage amount, and Haven Term may require a medical exam and has more options for coverage.

What we like

  • Healthy individuals will get cheaper premiums
  • 100% online application - no need to talk to an agent
  • Wide range of coverage options
  • Haven Term has various riders
  • No medical exam for Haven Simple

What we don't

  • Only offers term life insurance
  • Only selected regions are eligible for riders

What is the cost of life insurance in Texas?

Compared to other states, Texas has some of the most affordable life insurance policies because of its warm climate and low cost of living. However, a few key factors that can fluctuate the cost of a life insurance policy include age, gender, your health history, and lifestyle.

The average annual life insurance rate and average monthly life insurance premium in Texas are $633 and $53, respectively.

How are life insurance rates determined in Texas?

Rates are typically determined by medical underwriting, which means that an agent will go over the applicant’s personal, financial, and medical history to see what kind of risk they pose. Higher risks mean higher rates whereas a lower risk would result in lower premiums.

The following are some other factors that can contribute to insurance rates:

  • Age of the applicant: Older applicants tend to have higher insurance premiums than younger applicants because of a higher risk of passing away.
  • Gender: Rates can increase by 20-30% for men because their life expectancy is shorter than women.
  • Health conditions: Applicants with health concerns including heart disease, diabetes, and cancer are more likely to pay a higher insurance premium.
  • Family medical history: An applicant with a family history of particular types of diseases and/or cancers will likely pay a higher insurance rate. This is because they are at a greater risk of developing those specific conditions in comparison to other applicants.
  • Smoking and drinking: Smoking cigarettes can increase the chances of an earlier death as they pose several health issues. Also, an applicant with a history of alcoholism may be at greater risk for health problems. Therefore, both types of applicants would typically pay higher insurance premiums.

Difference between term and whole life insurance in Texas 

When getting life insurance, there are some essential aspects to consider. For example, do you want term or whole life insurance? Here’s what you should know about the differences between term and whole life insurance:

  • Length of coverage: Term life insurance offers coverage for a specific death benefit over a set period. Coverage can last anywhere from 10 to 30 years, and policyholders may even choose to have coverage for certain stages of their lives. For example, a policyholder may choose to have coverage when their children are depending on them financially. On the other hand, whole life insurance is considered a permanent type of coverage because it is provided for an entire lifetime. 
  • Death benefits: Term life insurance offers a death benefit to your beneficiary upon your demise. However, if the term comes to an end and you are still alive, the policy becomes worthless. You could also consider converting your term life insurance to a whole life policy as some insurance companies offer this option (but at a higher price). On the contrary, whole life insurance provides death benefit proceeds regardless of when you will pass away.
  • Cash value: While term life insurance is more affordable, it doesn’t have the option of cash value build-up. With whole life insurance, your coverage can accumulate a guaranteed cash value. 

If you’re on a budget, a term life policy is a cheaper option in comparison to a whole life policy. However, you must keep in mind that a term life policy is a specific period of coverage only. Whole life insurance provides coverage for your entire life and the premiums tend to stay the same throughout your lifetime, whereas term premiums can change depending on your age.

What can a life insurance policy be used towards in Texas?

A life insurance policy is meant to provide a lump-sum monetary benefit to your beneficiaries in the event of your unexpected death. These policies vary and cover accidents, illnesses, and even natural disasters. However, each plan is different, and you should familiarize yourself with the terms of coverage prior to buying one. An insurance policy can be helpful for surviving beneficiaries, especially if you were the sole income earner in the household.

Typically, beneficiaries use the funds for the following:

  • Childcare expenses 
  • End of life expenses 
  • Mortgage and loan repayment
  • College education expenses 
  • Retirement income replacement 

How to choose the best life insurance plan in Texas

When you are browsing insurance policies, many factors must be considered. The following are some tips to keep in mind when you are choosing the best life insurance policy for your needs:

  • Consider the amount of coverage you need: Once you determine how much coverage you need, consider your monthly budget, debts you owe, and any children who depend on you financially. The amount of coverage needed will depend on your financial situation and current needs.
  • Type of coverage: Based on your needs, you will have a fairly good idea if you should have a term life or whole life policy. Term life insurance in Texas is generally much cheaper than whole life policies, however, it offers significantly less coverage. On the other hand, whole life policies can provide more comprehensive protection but will come at a greater cost too.
  • Consider your age: The age at which a person decides to purchase a life insurance policy can largely impact the premium cost. The older you get, the higher risk you are at for death. Therefore, younger policyholders tend to pay less and are advised to choose a coverage plan as soon as they have some disposable income to insurance themselves.
  • Type of lifestyle: It is important to consider lifestyle choices when purchasing life insurance. Lifestyle choices that are considered high risk include drug and/or alcohol abuse, smoking, participating in risky hobbies like riding motorcycles without helmets, and other unsafe activities. People who choose lifestyles with significant risks of death should expect to pay higher premiums for their coverage since they pose a greater risk for the insurer.
  • Family history: Your family history can play a part in determining your rates too. If your parents or other relatives have health issues such as heart disease, chronic illness, and more, you may be required to pay more for life insurance (or not get coverage at all) if you want to insure yourself financially against premature death.